Motorola Solutions to buy Airwave UK

Motorola Solutions and Airwave UK have announced that they have entered into an agreement for Motorola Solutions to acquire Airwave for £817.5 million (approximately US$1.2 billion).

Motorola Solutions expects its net cash payment to be approximately £700 million (approximately US$1 billion) at closing, based on purchase price adjustments and cash in the business.

In addition, a deferred cash payment of £64 million will be made in November 2018.

The agreement is subject to required approvals and other customary closing conditions, and is expected to close in the first quarter of 2016.

Airwave is presently the operator of the UK’s emergency services communications network, which delivers mission-critical voice and data communications to more than 300 emergency and public service agencies in Great Britain.

Based on TETRA technology provided by Motorola Solutions, its network covers 99% of Great Britain’s landmass, is resilient and enables more than 300,000 police, fire, ambulance and other emergency personnel to easily and securely communicate with each other.

However, the UK is moving to a new model for provision of public safety communications. The network is to be operated in future by a private telco, which will leverage LTE technology to provide mobile broadband capabilities.

Motorola Solutions plans to fund the transaction with bank financing and cash on hand, predominantly from international funds.

“The Airwave acquisition demonstrates our commitment to public safety in Great Britain and to growing our Managed & Support Services business,” said Greg Brown, chairman and CEO of Motorola Solutions.

“The combination of our years of experience as a trusted global leader in mission-critical communications and Airwave’s proven service delivery platform will provide Great Britain with innovative emergency services technology that enhances public safety today and into the future.”

“Airwave has proven expertise in delivering mission-critical voice and data communications services, and over the past 15 years we’ve invested significantly in the development of a secure, resilient and interoperable network,” said Richard Bobbett, CEO of Airwave.

“We are delighted that through this new relationship with global leader Motorola Solutions, we are able to enhance our offering and ensure our customers continue to benefit from the high-quality service they have come to expect.”

Formed in 2000, Airwave is headquartered in Berkshire, England, with approximately 600 employees. The company is owned by investment fund Macquarie European Infrastructure Fund 2, which is supportive of the transaction.

In Australia, the Airwave brand was used between 2010 and mid-2015 by BAI Communications under an agreement with Airwave Solutions UK.

Earlier this year, BAI confirmed that it would not be renewing the licence to use the Airwave brand, and the agreement ended on 1 July.

“The Airwave team in Australia has worked closely with Airwave UK in order to leverage its extensive experience gained through its delivery of the world’s largest network of its kind. We would like to thank the Airwave UK team for their support over the past 5 years,” said Malcolm Keys, CEO, Airwave Solutions Australia, in a statement released at the time.

Since July, BAI’s Critical Communications team has continued to deliver the specific requirements of its customers without change, as the existing team members have remained in place.